Berlin property prices

Apartment purchase prices fell by 9.9% in the 2nd quarter 2023

The purchase prices for residential properties in Germany fell by an average of 9.9% in the second quarter compared to the previous year. This is the sharpest decline since records began in 2000, according to the house price index of the Federal Statistical Office (Destatis).

In the second quarter of 2022, the price index reached its highest level to date. Things went downhill both in the countryside and in the big cities. Destatis observed the lowest price declines of -7% for condominiums in sparsely populated rural districts. Single and two-family homes cost 8.1% less here. In the top 7 cities (Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Köln, München und Stuttgart), prices for condominiums fell by 9.8% and prices for single- and two-family homes fell by 12.6%. In the first quarter of 2023, purchase prices had already fallen by an average of 6.8% compared to the previous year.

Prices for newly built condominiums in the top 7 have fallen by an average of 5.5% from their highs so far through the second quarter. After rising by a good 45% between 2018 and the third quarter of 2022, they were recently up 37% and therefore cost about the same as at the beginning of last year, shows a special analysis by the German Real Estate Index.

Source: TD